Social Security COLA 2027: 3.6% Raise, What You Will Get

The Social Security cost-of-living adjustment (COLA) for 2027 is 3.6%, announced by the Social Security Administration on October 14, 2026. The average retired worker's check rises by about $75 a month, from roughly $2,095 to $2,170, starting with the January 2027 payment (SSA press release).

That is the largest raise since the 8.7% COLA for 2023 and well above the 2.8% retirees received for 2026. Below you will find the raise in dollars at common benefit levels, the other 2027 figures that changed with it, how the Medicare Part B premium nets against it, and how the COLA is calculated.

2027 Social Security COLA at a Glance

Figures come from the SSA 2027 COLA fact sheet. The 2026 average shown is SSA's estimate of the average benefit just before the 2027 increase, which is a little higher than the January 2026 average because new retirees tend to have larger checks.

Your 2027 Raise in Dollars

The COLA applies to your benefit before any Medicare premium is taken out. Multiply your current gross monthly benefit by 3.6% to see your raise, or use the Social Security calculator to project your benefit at any claiming age. SSA rounds the result down to the dime, so your exact figure may be a few cents lower.

Retirees on Social Security receive the new amount in January 2027. People on SSI get their first higher payment on December 31, 2026, because the January payment date falls on a holiday. SSA posts each person's new amount in their my Social Security account and mails paper notices in December.

Medicare Part B: How Much of the Raise You Keep

Most retirees have the Medicare Part B premium deducted from their Social Security check, so the real raise is the COLA minus any premium increase. The standard Part B premium is $202.90 a month in 2026 (CMS). The 2027 premium has not been announced yet. CMS normally publishes it in November.

The 2026 Medicare Trustees Report projected a 2027 standard premium of about $209.50, an increase of $6.60. If the final figure lands near that projection, the average retiree's $75 raise would shrink to roughly $68 after the higher premium. Someone receiving $1,000 a month would keep about $29 of a $36 raise.

Two rules soften the blow for some people:

• Hold harmless. If the dollar increase in your Part B premium is larger than your COLA raise, the premium increase is limited so your net Social Security check does not go down. This mostly protects people with small benefits who already had Part B deducted the year before.
• Medicare Savings Programs. People with limited income and assets may have their Part B premium paid by their state Medicaid program.

Higher earners pay more. The income-related surcharge (IRMAA) for 2026 starts above $109,000 of modified adjusted gross income for single filers and $218,000 for joint filers, based on your 2024 tax return. The IRMAA calculator shows which bracket you fall in.

How the COLA Is Calculated

The formula is set by law. SSA compares the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August and September of the current year with the same three months a year earlier. The percentage increase, rounded to the nearest tenth of a percent, becomes the COLA. For 2027, the average CPI-W for the third quarter of 2026 was 3.6% higher than in the third quarter of 2025 (BLS CPI data).

If prices fall, there is no negative COLA. Benefits simply stay the same, which happened for 2010, 2011 and 2016.

Critics point out that the CPI-W tracks spending by working households, not retirees, who spend more on health care and housing. An experimental index for older Americans (CPI-E) has often run slightly higher, but Congress has not changed the formula.

Social Security COLA History: The Last 10 Years

Source: SSA COLA history. The year shown is the year the higher benefit is paid; each COLA is announced the previous October.

Compounding adds up. A $2,000 benefit in 2017 would be about $2,800 by 2027 after these ten increases, which is why delaying a claim, or simply living longer on an inflation-protected check, is so valuable.

Other 2027 Changes Worth Knowing

The wage base rises to $192,300

Workers pay the 6.2% Social Security tax on earnings up to $192,300 in 2027, up from $184,500. Someone earning at or above the cap pays $11,922.60 in employee Social Security tax, $483.60 more than in 2026. Medicare tax still applies to every dollar of wages. See how this hits your take-home pay with the paycheck calculator.

The earnings test is more generous

If you claim before full retirement age and keep working, SSA withholds $1 for every $2 you earn above $25,560 in 2027 ($2,130 a month). In the calendar year you reach full retirement age, the limit is $67,920 ($5,660 a month) and SSA withholds $1 for every $3 above it, counting only earnings before the month you reach that age. Withheld benefits are not lost: your monthly amount is recalculated upward once you reach full retirement age.

The maximum benefit at full retirement age is $4,188

That figure applies to someone with 35 years of earnings at or above the taxable maximum who claims at full retirement age in 2027. It rose by much less than 3.6% because it depends on the wage-indexed benefit formula for each new group of retirees, not just the COLA. People already receiving benefits get the full 3.6%.

Worked Example: A Married Couple

Maria receives $2,400 a month and her husband Tom receives $1,600. Both have Part B premiums deducted.

• Maria's raise: $2,400 x 3.6% = $86.40, new gross benefit $2,486.40.
• Tom's raise: $1,600 x 3.6% = $57.60, new gross benefit $1,657.60.
• Combined raise: $144 a month, or $1,728 a year.
• If Part B rises to the projected $209.50, their two premiums go up $13.20 a month in total, leaving about $130.80 a month of new money.

Remember that up to 85% of benefits can be taxable once your combined income passes $25,000 (single) or $32,000 (joint). Those thresholds are not indexed for inflation, so a COLA can push a little more of your benefit into taxable income. The new $6,000 senior deduction can offset some of that; our guide to who qualifies for the senior deduction explains how.

Should the COLA Change When You Claim?

No. COLAs apply to your benefit amount from age 62 onward whether or not you have claimed yet, so you do not miss a COLA by waiting. Delaying past full retirement age still adds 8% a year in delayed retirement credits on top of every COLA. If you are weighing an early claim against waiting, the Social Security break-even calculator shows the age at which delaying pays off. For the bigger picture on claiming ages, read our Social Security 2026 claiming guide.

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